Trump's 2018 Farm Bill sparks some interest on Cannabis Stocks

Market Trends - 31/01/2019

Thanks to the 2018 Farm Bill that President Donald Trump signed as a law, a substance called non-psychoactive cannabis synthesis or (CBD) seems to be growing at a fast pace.

According to CNBC, the 2018 Farm Bill requires to eliminate all cannabis fiber outputs with a portion smaller than a 0.3% concentration of the psychoactive ingredient tetrahydrocannabinol ("THC"). Now in simple words, it is now legal to manufacture, distribute and sell cannabidiol anywhere in the U.S.

The CBD is seen to have medical advantages, granting relief from everything from physical pain to psychological issues like depression and anxiety.

On Wednesday, in a note, Canaccord Genuity recognized these stocks as opportunities that investors are closely watching to identify firms producing (CBD) products.

Notwithstanding the green light for the Farm Bill, legal uncertainties have continued to worry the U.S. Food and Drug Administration that has kept its position, that it is illegal to sell CBD as a dietary supplement.

The very popular CNBC’s Jim Cramer on the other hand, expect that the cannabidiol related stocks will increase in 2019, calling it a "massive opportunity." “Cramer stated "That's going to give the (CBD) market a major boost.

Nevertheless despite the current situation and the confusion, the trend is forming and companies are already producing some products and selling them through Safeway in some U.S. states.

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